Suriname's Energy Industry

Suriname's rich oil and gas prospects

Suriname has emerged in recent years as one of the most promising new oil and gas provinces worldwide. South America’s smallest nation by both size and population has recently seen major discoveries in its territorial waters, with Eni putting oil reserves at 124 million barrels as of end-2022 amid a continuing spate of discoveries.

Suriname’s oil production is dominated by state-owned Staatsolie’s onshore developments. As of mid-2023, the company was producing 17,000 bopd. However, the country’s energy scene is poised for major changes following a series of commercial offshore oil discoveries made in late 2019 and 2020.

Following the “Malaysian model,” Staatsolie acts as both the national energy company and regulator, covering the responsibilities typically held by an energy ministry. As regulator, its stated goal is to keep as much acreage as possible under contract with international partners. As an energy company, Staatsolie engages in oil and gas exploration and production, as well as the refining, marketing, transportation and sale of oil products. The company also contributes 75% of Suriname’s power generation.

Suriname’s star hydrocarbons play is Block 58. The block is being developed under a 2019 joint-venture agreement between partners TotalEnergies and APA, each holding 50%. TotalEnergies operates the block, and in September 2023 unveiled a USD 9-billion offshore drilling project at two sites that CEO Patrick Pouyanné says could contain 700 million barrels. The company is targeting production of 200,000 bopd, a game-changing volume more than 10 times Suriname’s current output. Development studies began in September 2023 and an FID on the project is expected by end-2024, with production to follow four years later in 2028.

The government’s strategic plans for its wealth of oil and gas resources involve developing offshore finds in the near term and with a low carbon impact, and using revenues from these projects to address its international debt and fund its energy transition.